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Varian: ProBeam Compact Launched, FDA Nod for New Eclipse

Varian Medical Systems Inc.VAR is riding high on the back of its innovative product pipeline, regulatory wins and frequent product launches. The company recently launched ProBeam Compact System, which is an upgradeable single room proton therapy system. The entry-level system will be available in the market for $25 million.

Proton therapy is a cancer treatment which uses a beam of protons to treat unhealthy tissues. ProBeam Compact aims at reducing the cost and space requirements for the successful execution of the proton therapy treatment.

The system has the ability to turn 360 degrees and deliver proton beams. It also generates images at any desired angle with greater accuracy and better positioning in relation to the tumor. The system also makes use of Varian's Eclipse and ARIA software, which simplifies the overall treatment procedure.

Most recently, Varian's ProBeam proton therapy system received the CE Mark approval, which allows the company to commercialize the product in European markets.

Last week, Varian announced FDA clearance as well as CE Mark for its VitalBeam platform. The VitalBeam system is a modular, high-throughput radiotherapy system which has been incorporated into Varian's TrueBeam radiotherapy system.

Meanwhile, Varian recently announced FDA 510(k) approval for its new version of the Eclipse software that will include the Acuros PT dose calculation algorithm for an advanced proton therapy planning and patient care.

Acuros is an advanced dose calculation software developed by Transpire (acquired by Varian in 2014) which forms an integral part of the Eclipse software. The Acuros PT algorithm is designed for a quicker and more precise dose calculation and hence ensures better proton therapy treatment planning, particularly in regions with varying tissue density like the lungs.

Moreover, the latest Eclipse software includes features that will help in better handling of complications during treatment procedures. The software is also integrated with enhancements for faster research, planning and quality assurance.

We believe that the new products will help Varian achieve greater market penetration, which in turn, will fortify its foothold in the radiotherapy market. However, a strong U.S. dollar and intensifying competition in the Oncology market are major headwinds for the company in the near term.

Zacks Rank & Key Picks

Varian presently carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the industry include Cyberonics Inc. CYBX , Masimo Corporation MASI and Cesca Therapeutics Inc. KOOL . Each of these stocks sports a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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